Final answer:
A worksheet in accounting is a temporary tool for data collation and error checking, not a permanent record or required document. A bank's balance sheet is a financial statement showing assets, liabilities, and net worth, reflecting the financial position at a particular time.
Step-by-step explanation:
A worksheet in accounting is not a permanent record but rather a temporary document used during the accounting cycle to collate all of a company's financial transactions and prepare them for journalizing and posting to the ledger. It serves as a tool for accountants to ensure that the books are balanced before making any formal records in the financial statements, such as the balance sheet and income statement. Contrary to the statement in the question, a worksheet is not typically a required document within the accounting cycle; however, it is a useful one that facilitates accuracy and efficiency in the preparation of financial statements.
A bank's balance sheet, is an essential financial statement that shows the bank's financial position at a specific point in time. It lists the bank's assets, such as cash held in the vaults, reserves at the Federal Reserve, loans made to customers, and bonds, as well as its liabilities, which include customer deposits. The difference between the bank's assets and liabilities is known as the bank's net worth or bank capital.
The balance sheet is a crucial element for understanding the financial stability and liquidity of a bank. When the value of a bank's assets declines due to factors such as defaults on loans or a mismatch in interest rates, it runs the risk of negative net worth, which can be severe for the bank's operating capability and reputation.